UPSC MainsECONOMICS-PAPER-II201620 Marks150 Words
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Q26.

What are the basic features of new national rural employment guarantee scheme? What are the impediments in their implementation?

How to Approach

This question requires a structured response outlining the core features of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the challenges faced in its effective implementation. The answer should begin with a brief introduction to the scheme's objectives. The body should detail the key features – legal guarantee, nature of work, wage rates, grievance redressal – and then systematically address implementation impediments like delayed wage payments, corruption, lack of awareness, and inadequate monitoring. A concluding statement should emphasize the importance of addressing these challenges for the scheme’s continued success.

Model Answer

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Introduction

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, represents a landmark piece of social legislation in India. It aims to guarantee 100 days of wage employment to rural households whose members are willing to do unskilled manual work. Born out of the National Rural Employment Programme (NREP) and Employment Assurance Scheme (EAS), MGNREGA seeks to provide a safety net to vulnerable rural populations, enhance livelihood security, and contribute to rural infrastructure development. However, despite its noble intentions, the scheme faces several hurdles in its effective implementation, hindering its potential impact.

Basic Features of MGNREGA

MGNREGA is built upon several core principles and features:

  • Legal Guarantee: It legally guarantees 100 days of employment to every rural household willing to do unskilled manual work.
  • Demand-Driven: Employment is provided based on demand generated by applicants. Households apply for work, and the government is obligated to provide it within 15 days.
  • Nature of Work: The work undertaken is primarily unskilled manual work, focusing on durable assets like water conservation, soil erosion control, and rural connectivity.
  • Wage Rates: Wage rates are notified by the central government and are linked to the Consumer Price Index – Agricultural Labourers (CPI-AL). The minimum wage rate is ₹267 per day as of 2023-24 (knowledge cutoff).
  • Grievance Redressal: The Act provides for a multi-level grievance redressal mechanism, including ombudsmen at the district level.
  • Decentralization: Implementation is largely decentralized, with Gram Panchayats playing a crucial role in planning, monitoring, and execution of works.
  • Material Component: A portion of the funds can be used for material costs, up to 60% of the total expenditure, enhancing the quality and durability of assets created.

Impediments in Implementation

Despite its robust framework, MGNREGA faces significant challenges in its implementation:

  • Delayed Wage Payments: This is arguably the most persistent problem. Delays are often caused by administrative bottlenecks, lack of funds in state accounts, and issues with the National Electronic Fund Management System (NeFMS).
  • Corruption and Leakages: Instances of fake beneficiaries, inflated muster rolls, and misappropriation of funds are frequently reported.
  • Lack of Awareness: Many eligible households are unaware of their rights under MGNREGA, particularly in remote areas.
  • Inadequate Monitoring: Monitoring mechanisms are often weak, leading to poor quality of work and non-compliance with guidelines. Social audits, while mandated, are not consistently conducted.
  • Insufficient Funding: Budgetary allocations have often been insufficient to meet the demand for work, leading to delayed payments and reduced employment opportunities.
  • Administrative Capacity: Limited administrative capacity at the Gram Panchayat level hinders effective planning, implementation, and monitoring.
  • Overlap with other Schemes: Coordination issues with other rural development schemes can lead to duplication of efforts and inefficient resource allocation.

The following table summarizes some key challenges and potential solutions:

Challenge Potential Solution
Delayed Wage Payments Strengthening NeFMS, ensuring timely fund transfers to states, simplifying payment procedures.
Corruption Strengthening social audits, promoting transparency through public disclosure of information, using technology for monitoring.
Lack of Awareness Conducting awareness campaigns, involving Self-Help Groups (SHGs) and local NGOs in dissemination of information.
Inadequate Monitoring Strengthening monitoring mechanisms, promoting citizen participation in monitoring, utilizing technology for real-time tracking of works.

Conclusion

MGNREGA remains a vital instrument for rural livelihood security and poverty reduction in India. Addressing the persistent challenges of delayed wage payments, corruption, and inadequate monitoring is crucial for realizing its full potential. Strengthening administrative capacity, ensuring adequate funding, and promoting greater transparency and accountability are essential steps towards making MGNREGA a truly effective and impactful program. Continuous evaluation and adaptation based on ground realities are also necessary to ensure its long-term sustainability and relevance.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

NeFMS
National Electronic Fund Management System – an online platform for direct transfer of funds to MGNREGA beneficiaries.

Key Statistics

In FY 2022-23, MGNREGA provided employment to 5.58 crore households, generating 2.53 billion person-days of work.

Source: Ministry of Rural Development, Annual Report 2022-23

As of December 2023, the average wage rate under MGNREGA is ₹267 per day, varying by state.

Source: Ministry of Rural Development (as of knowledge cutoff)

Examples

Rajasthan’s MGNREGA success

Rajasthan has been a leading state in implementing MGNREGA, focusing on water conservation works like farm ponds and check dams, significantly improving groundwater levels in several districts.

Frequently Asked Questions

What is the role of Gram Panchayats in MGNREGA?

Gram Panchayats are responsible for planning, implementation, and monitoring of MGNREGA works at the local level. They also verify applications, issue job cards, and ensure timely payment of wages.

Topics Covered

EconomySocial IssuesRural EmploymentPoverty AlleviationSocial Welfare